By Olivia Bugault 
 

Airbus SE, Safran SA and Tikehau Ace Capital jointly said Tuesday that they have signed a memorandum of understanding with Eramet SA for the purchase of its subsidiary called Aubert & Duval.

The deal--which they expect to be completed before the end of the year--is based on an enterprise value of 95 million euros ($107.5 million) for Aubert & Duval, French mining and metallurgy company Eramet said in a separate release. Eramet also said that it will have an estimated negative accounting effect of EUR340 million on its 2021's result, but no impact on the company's debt at the end of last year.

European plane maker Airbus, French aircraft engine manufacturer Safran and asset management firm Tikehau Capital SCA's subsidiary Tikehau Ace Capital intend to create a new jointly-owned holding company for the specific goal to buy 100% of Aubert & Duval, they said. They would have equal ownership in the joint holding company, they said.

"This acquisition would allow Airbus and Safran to secure the strategic supply chain, for themselves as well as other customers, and new material development for current and future civil and military aircraft and engine programs," they said.

Aubert & Duval has annual revenues of roughly EUR500 million and is a supplier of critical parts for several sectors such as aerospace, defense and nuclear, they said.

 

Write to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

February 22, 2022 03:32 ET (08:32 GMT)

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